10 Questions to Ask Your Life Insurance Agent
Term life insurance is a type of life insurance that provides coverage for a specific period of time, typically 10, 20, or 30 years. If the policyholder dies during the term of the policy, the death benefit is paid to the beneficiary. Term life insurance is generally more affordable than other types of life insurance, such as whole life insurance, and it is a good option for people who need coverage for a specific period of time, such as to pay off a mortgage or to provide for young children.
Here are 10 questions to ask your term life insurance agent:
- What type of term life insurance policy is right for me? There are different types of term life insurance policies available, such as level term, decreasing term, and convertible term. Your agent can help you choose the right policy for your individual needs.
- How much term life insurance do I need? The amount of term life insurance you need depends on your individual circumstances, such as your income, debt, and expenses. Your agent can help you determine how much coverage you need.
- How much will my term life insurance premium cost? The cost of your term life insurance premium will vary depending on your age, health, and the amount of coverage you choose. Your agent can provide you with a quote.
- Are there any exclusions or riders that I should be aware of? Life insurance policies typically have exclusions, which are events that are not covered by the policy. Riders are additional coverage options that can be added to a policy for an additional fee. Your agent can explain the exclusions and riders that apply to your policy.
- What is the process for filing a claim? If you need to file a claim on your term life insurance policy, your agent can help you with the process.
- What happens to my policy if I become disabled? Some term life insurance policies offer disability riders, which may provide coverage if you become disabled and are unable to work. Your agent can explain the disability rider options that are available to you.
- Can I renew my policy at the end of the term? Some term life insurance policies are renewable, which means that you can renew the policy for another term at the end of the current term. Other policies are not renewable, which means that the policy will expire at the end of the term. Your agent can explain whether your policy is renewable and what the options are for renewing your coverage.
- What happens if my health changes? If your health changes after you purchase a term life insurance policy, you may be able to convert your policy to a permanent life insurance policy. Permanent life insurance policies typically have higher premiums than term life insurance policies, but they may offer additional benefits, such as cash value. Your agent can explain the conversion options that are available to you.
- What happens if I need more coverage in the future? If you need more term life insurance coverage in the future, you may be able to purchase additional coverage. However, your premiums may be higher if you purchase additional coverage later in life. Your agent can discuss your options for purchasing additional coverage in the future.
- What is the financial stability of the insurance company? It is important to choose a term life insurance policy from a financially stable insurance company. You can check the financial rating of insurance companies at AM Best or Fitch Ratings.
In addition to these 10 questions, you may have other questions about term life insurance. Be sure to ask your agent any questions you have so that you can make an informed decision about your coverage.